Housing associations in the North-east are calling for a single body to direct regeneration cash and lift the region’s housing prospects.
The group, members of the Housing Federation North, said the Housing Corporation would be well placed to take on such a role.

But the price of this would be a shake-up in the way the corporation hands out grants.

The associations want the corporation to show more commitment to the large-scale regeneration projects being developed in the North-east. Its concentration on the number of homes built is not appropriate for the task ahead, they believe.

Social landlords in the region are still smarting after the corporation took almost a fifth of this year’s budget and handed it to the South.

Chief executive Norman Perry stressed the government forced his hand by demanding the move, but northern associations fear it could happen again.

Research last month by Birmingham University found one in five of the region’s one million homes were “at risk” from collapsing demand. At least three housing associations have been forced to demolish recently built homes when they could not be let.

Robbing us of £5m is no good way to meet needs. We can’t allow the loss to continue

Keith Loraine, Housing Federation North

The Housing Federation North is commissioning research into how the skills and resources of the sector can play a more significant role in regeneration work.

Spokesman Keith Loraine, chief executive of Tyne & Wear-based housing association Enterprise 5, said: “The corporation would be well placed to take on the role of a regeneration body for the region. But the targets it works to are too inflexible.

“Robbing us of £5m is no good way to meet needs and we cannot allow that loss to continue.”

The group is to submit its plans to deputy prime minister John Prescott in the debate on the comprehensive spending review.

Insiders say the group could be pushing at an open door in calling for new corporation targets.